Commercial Leasing Tips for Healthcare Tenants

By Jeff Grandfield and Dale Willerton

For many healthcare tenants, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While a doctor focuses on proper patient care, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.

As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for a doctor as the amount of rent he pays will directly affect the practice’s financial bottom line.

Whether you are leasing a new location for the first time or negotiating a lease renewal for your practice, these are some money-saving tips for healthcare tenants:

Read the Demolition Clause

Almost every lease agreement requires the tenant to restore the leased premises back to its original condition once the tenant moves out. This demolition could cost you thousands of dollars. Wording in these clauses is usually pretty tricky so be aware. There is also a demolition clause whereby the landlord can tear down the current building and construct a new building on the same site – this can be more pertinent and dangerous with older commercial buildings.

Convert Allowance to Free Rent

Say that you have negotiated for a $60,000 tenant allowance. The landlord has calculated that amount into the rent, but the lease will likely stipulate that the allowance is payable to the tenant on completion of all work based on paid receipts that you provide. In case that you don’t spend the entire allowance, add a clause that says any amount less than the $60,000 allowance you spend on improvements will be credited in free rent first accruing.

For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail request to

Jeff Grandfield and Dale Willerton – The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail  or or visit

Healthcare Business Today is a leading online publication that covers the business of healthcare. Our stories are written from those who are entrenched in this field and helping to shape the future of this industry. Healthcare Business Today offers readers access to fresh developments in health, medicine, science, and technology as well as the latest in patient news, with an emphasis on how these developments affect our lives.

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